How to push back on Net-60 payment terms
Your client wants 60 days to pay. Four counter-offers, what the law says about payment terms, and an email you can send today.
Net-60 means you can wait two months for money you have already earned, so don't accept it as sent. Reply today with one specific counter: Net-30 with a late fee, a deposit, milestone payments, or a discount for paying early. The freelance laws in New York, California and Illinois don't ban Net-60, so your counter-offer is what moves the date.
What does Net-60 actually cost you?
Net-60 gives the client 60 days to pay each invoice. If the clock starts at "approval," "receipt" or the end of the month instead of the invoice date, the real wait runs longer.
The cost is cash you have earned but can't use yet. Here is an example with made-up numbers:
- You run a two-person design studio and bill one client $9,000 a month.
- On Net-30, about one month of invoices is unpaid at any time: $9,000.
- On Net-60, about two months is unpaid: $18,000.
- Your own costs still go out every month while the extra $9,000 waits.
Moving from 30 to 60 days ties up one more month of billing for as long as you work with that client. If you invoice only on completion, you finish the job and then wait up to two more months.
What do payment laws say about Net-60?
Four US freelance laws, in New York State, New York City, California and Illinois, don't ban Net-60. They set a fallback: if the contract names no pay date, payment is due within 30 days. If your state has no freelance payment law, your contract is your main protection.
| Where | Who's covered | If the contract names no pay date | Also worth knowing |
|---|---|---|---|
| New York State | A person or one-person business hired for $800 or more by one client, alone or added up over 120 days. | Pay within 30 days after the work is done | Once you start, the client can't make on-time pay depend on you taking less |
| New York City | A person or one-person business, on any contract. Contracts of $800 or more, alone or added up over 120 days, must be in writing and state the pay date | Pay within 30 days after you complete the work | Same bar on taking less. If you're paid late, you can claim double the unpaid amount |
| California | A person or one-person business doing professional services, as the law defines them, for a California client. $250 or more, alone or added up over 120 days, on contracts from January 1, 2025 | Pay within 30 days after the work is done | Once you start, the client can't make on-time pay depend on you taking less, doing more, or granting more IP rights |
| Illinois | Independent contractors working in Illinois or for a hiring entity located in Illinois, at $500 or more in a 120-day period, on contracts taking effect after July 1, 2024 | Pay within 30 days of completing the services | You are entitled to a written contract that states when pay is due |
| EU (Directive 2011/7/EU framework) | Deals between businesses, under each country's own law | Interest generally starts 30 days after the client receives the invoice, or after delivery if you invoiced first, provided you've done your part and the delay is the client's fault | Terms over 60 days must be expressly agreed and not grossly unfair. Countries can be stricter: in the Netherlands, large companies must pay SMEs and self-employed people within 30 days |
| UK | Deals between businesses | Late 30 days after the customer receives the invoice or the goods or services, whichever is later | Agreed terms are usually within 60 days, and longer must be fair to both. Statutory interest is 8 percentage points above the Bank of England base rate per year, unless the contract sets its own rate |
In all four US laws, 30 days applies only when the contract is silent. Sign Net-60, and these laws hold the client to 60 days, not 30. For a client abroad, which country's law applies depends on your contract.
An early-payment discount is different. A discount written into the contract before work starts, which the client can choose to use, is a term you both agreed. What New York State, New York City and California bar is pressure after you've started: accept less, or wait.
Check that you are covered before you cite a law to a client. The New York and California laws cover only a person or a one-person business, so the two-person studio above may not be covered. Each law also excludes some work and clients, such as lawyers, licensed medical professionals, construction work, government clients and, in California, people hiring for their own household.
The UK government has introduced a bill that would cap business payment terms at 60 days, with limited exemptions. As of November 9, 2026, it had passed the House of Lords and was waiting for its second reading in the House of Commons. The current rules apply until the new provisions come into force, and the government plans a transition period.
Which counter-offer should you make?
Four counter-offers answer a Net-60 request. Lead with one and keep a second in reserve.
| Counter-offer | Works when | They may say | You can reply |
|---|---|---|---|
| Net-30, with a late fee on overdue invoices | The client sets terms deal by deal | "Our standard is Net-60." | "Then let's keep Net-60 with a deposit on signing." |
| A deposit (say 30%) on signing, Net-60 on the rest | The client's payment system is fixed at Net-60 | "We don't pay deposits." | "Then let's invoice monthly, so no invoice covers more than one month of work." |
| Milestone payments, due at set points such as the end of each phase | The project runs over a month, in clear phases | "We pay on final delivery." | "Then a deposit now and the balance on delivery." |
| An early-payment discount (say 2% off if paid within 10 days) | The client watches price and can pay fast | "We'll take the 2% and pay on day 60." | "The discount applies only if payment arrives by day 10." |
Price the discount before you offer it. On a $9,000 invoice, 2% is $180 (example numbers). That $180 buys you about 50 days. A late fee works the other way: it costs the client nothing unless it pays late. Check that your rate is allowed where you and the client are based.
What should you send back?
A good reply is short and names one alternative. The email below asks for Net-30 with a late fee, with a deposit as the fallback.
“Hi [Name], Before we sign, I'd like to discuss the payment terms. Net-60 is hard for a studio our size, because our own costs are due every month. Could we do Net-30 from the invoice date, with a late fee of [1.5%] a month on overdue amounts? If your system can only pay at Net-60, we can make that work with [30%] of the fee paid on signing. Happy to talk it through on a call. Thanks, [Your name]”
If they agree, put the terms in the contract itself. Bracketed figures are examples. For Net-30 with a late fee:
“Payment. Client will pay each invoice within 30 days of the invoice date. Any amount not paid when due will incur a late fee of [1.5%] of the overdue amount for each month it remains unpaid, or the highest rate allowed by law, if lower. Late fees are simple and do not compound.”
For Net-60 with a deposit:
“Payment. Client will pay a deposit of [30%] of the total fee on signing, and work will begin when the deposit is received. The deposit will be credited against the total fee. Client will pay each invoice for the remaining balance within 60 days of the invoice date.”
When should you just accept Net-60?
Net-60 can be a fair trade when the client is reliable and the contract protects you if it pays late. Run the numbers first. With monthly invoicing at Net-60, work you start on March 1 is invoiced March 31 and may not be paid until about May 30, roughly 90 days later.
| If | Then |
|---|---|
| A large client with steady work and a record of paying on time | Accept Net-60 if your cash can carry the gap. Add a late fee and invoice monthly |
| A deposit already covers your costs until the first invoice is paid | Accept Net-60 on the balance |
| The project is under two weeks and the client is new | Ask for payment up front, in full or in part |
| The client refuses any deposit, late fee or milestone | Build the wait into your price, or decline the work |
| After you start, the client offers on-time pay only if you take less | Don't agree. Where the New York or California laws apply, that condition is barred. Get advice |
What should you check before you reply?
- The clock. Propose terms that run from the invoice date. If the client wants another trigger, such as approval, define it and cap how long it can take.
- The late fee. The contract sets a late fee or interest rate and when it starts.
- The cash gap. A deposit or milestones can help cover your costs on longer projects. Say when each milestone payment is due, not only when you invoice it.
- The invoice route. You know who receives invoices, any PO number, and any submission cut-off.
- The pause. The contract expressly lets you pause work if an invoice is overdue by a set number of days (15, for example).
When should you get a lawyer or contact an agency?
Get outside help in these cases:
- The client is already late, or wants you to take less to be paid on time. In New York City, file a complaint online with the Department of Consumer and Worker Protection, or call 311. Its address freelancer@dcwp.nyc.gov is for questions. In Illinois, the Department of Labor has a complaint form on its Freelance Worker Protection Act page.
- Your claim is under California's law, or New York State's law outside New York City. In New York, the Attorney General can investigate complaints. In California, talk to a lawyer about suing; public prosecutors can also bring cases.
- The contract is large for your business, crosses borders, or ties your pay to the client getting paid by its own customer.
- You aren't sure a freelance law covers you, for example because your studio has staff.
DealMate is an AI contract assistant that takes a deal from first draft to final: describe the deal in a sentence and get a draft built from your templates and clauses; when they send their template, review it from your side and see what's risky; when their redlines come back, compare the versions and see every change and the risk it carries.
Sources
- New York General Business Law § 1411: Contracted compensation payments — New York State Senate
- New York General Business Law § 1410: Definitions — New York State Senate
- New York General Business Law § 1414: Violations — New York State Senate
- Freelance Workers — NYC Department of Consumer and Worker Protection
- Freelance Isn't Free Act: Frequently Asked Questions — NYC Department of Consumer and Worker Protection
- 5-Year Report on NYC's Freelance Isn't Free Act (November 1, 2023) — NYC Department of Consumer and Worker Protection
- 2023-24 Legislative Summaries (SB 988, Freelance Worker Protection Act, p. 128) — California Senate Judiciary Committee
- SB 988 (Wiener) committee analysis, hearing April 16, 2024 — California Senate Judiciary Committee
- Freelance Worker Protection Act — Illinois Department of Labor
- Late payment — European Commission
- Late payment — Your Europe (European Union)
- Payment term, collection charges and statutory interest — Business.gov.nl (Government of the Netherlands)
- Late commercial payments: charging interest and debt recovery — GOV.UK
- Late commercial payments: charging interest — GOV.UK
- Commercial Payments Bill: overview — GOV.UK
- Commercial Payments Bill [HL] — UK Parliament
- Business and Professions Code §18101 (Freelance Worker Protection Act definitions) — California Legislative Information
- Freelance Worker Protection Act: FAQs — Illinois Department of Labor
This is general information, not legal advice. For high-stakes or unusual terms, talk to a lawyer.
Got their version in front of you? DealMate reads it from your side and suggests wording you can send back.
Try it on your next contractFree trial · no card needed